BC Eyes International Pix Solutions: Regulatory and Technical Challenges

The Central Bank (BC) is closely monitoring the possibility of extending the instant payment system Pix internationally, as recently stated by Ângelo José Mont’Alverne Duarte, chief of cabinet to the director of organization for the financial system and resolution (Diorf) at the BC. The idea involves enabling Pix payments directly between different country's systems without necessarily going through a fiduciary currency. Although considered more 'elegant', this approach presents significant challenges, particularly in terms of governance and regulation. The main obstacle is not technological but legal and regulatory, given the distinct rules, laws, and norms in each country. Operational differences between financial systems, such as account identification (agency and account number in Brazil versus numerical systems in other countries), add layers of complexity to the process. Communication during technical incidents also poses a challenge, especially when dealing with different regulators and international laws.